Scandinavian Working Papers in Economics

Working Paper Series,
Uppsala University, Department of Economics

No 2014:7: The impact of microfinance on factors empowering women: Differences in regional and delivery mechanisms in India’s SHG programme

Ranjula Bali Swain () and Fan Yang Wallentin ()
Additional contact information
Ranjula Bali Swain: Department of Economics, Postal: Uppsala University, P.O. Box 513, SE-751 20 Uppsala, Sweden
Fan Yang Wallentin: Department of Statistics, Postal: Uppsala University, P.O. Box 513, SE-751 20 Uppsala, Sweden

Abstract: We examine how the impact on women empowerment varies with respect to the location and type of group linkage of the respondent. Using household survey data from five states in India, we correct for selection bias to estimate a structural equation model. Our results reveal that in the southern states of India empowerment of women takes place through economic factors. For the other states, we find a significant correlation between women empowerment and autonomy in women’s decision-making and network, communication and political participation respectively. We do not however find any differential causal impact of different delivery methods (linkage models).

Keywords: microfinance; women empowerment; structural equation model; self-help groups

JEL-codes: C31; G21; J16

28 pages, October 31, 2014

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